News About Agriculture Loan

• Key takeaways from the Union Budget Announcement for Agriculture Sector

  The union budget presented on Wednesday, chiefly underscored 10 main areas of development namely, agriculture, rural sector, youth, healthcare for poor and underprivileged, demonetization, infrastructure, speedy accountability, public services, fiscal management and tax administration. The Finance minister assured that demonetization will have a positive impact on the economy and the lives of people as a whole. Furthermore, it will result in increased GDP. According to the new budget plan, the fund allocation for NABARD will be increased to Rs.40,000 crores. The change in income tax rate will reduce the tax liability of the working population. As per the revised rates, people with annual income between Rs.2.5 to Rs.5 lakh will have to pay only 5% towards income tax.

  

• Agricultural Loan increases by 11% in Gujarat

  According to the State Level Bankers Committee in Gujarat, the agricultural loans have increased to almost 11% in comparison to last year. The loan amount have risen considerably from Rs. 62,081 crores in June last year to an extra addition of around Rs. 7000. Convenor of SLBC Vikramaditya Singh Khichdi said that there is higher chance of rise in the agricultural loans in the last quarter of this year because of the onset of monsoons in July. He also added that with the aid of these loans, the farmers can buy lot of agricultural equipment and other instruments useful in the construction of agriculture infrastructure. This year, Gujarat has seen less rain than before which amounts to about 18% rainfall deficit. But, this has not stopped the farmers to take more loans and cover additional areas as far as sowing of Kharif crops is concerned. The agricultural department revealed that the total area covered has increased from Rs. 85.04 lakh hectare to Rs.86.23 lakh hectare this year.

  

• Crop Loan waiver to benefit over 78,000 Farmers

  Crop loans that are outstanding as on 30th June 2016 will be waived in Tamil Nadu. Chief Minister Jayalalithaa had made the promise to waive these loans during the Assembly Election 2016. A function was held at the Maravankudieruppu Primary Agriculture Cooperative Society. The certificates of the waiver to small and marginal farmers were distributed at the event. Rs.2.20 crore of loans were already waived at the PACS. Farmers who had availed crop loans for short and medium terms stand to benefit. The estimated figure of farmers that will benefit from this waiver is 78,669. The total loan amount including interest that will be waived amounts to around Rs.251 crore.

  

• Agriculture Minister urges Banks to ease Process of availing Crop Loans

  In a move that will make it easier for farmers to get crop loans, agriculture minister, Radha Mohan Singh, has instructed banks to take all necessary measures to streamline and simplify the process of loan approval, so that funds can be provided to farmers in a timely manner. He has also urged banks to make the loan availing process ˜hassle-free by systematizing the documentation process and connecting the mobile banking, Andhra and Jan Dhan. For the current financial year, the government has increased the agricultural credit target from Rs 8.5 lakh crore (2015-2016) to Rs 9 lakh crore. Additionally, farmers can also avail short term loans up to the amount of Rs 3 lakh at a subsidized rate of 7% for a tenure of 1 year. Farmers who repay the loan in a timely manner will be allowed a further subvention of 3 %.

  

• NOC Requirement Scrapped for Crop Loans

  The Maharashtra state government has effectively scrapped the requirement for obtaining a no objection certificate (NOC) from societies and banks before applying for a fresh crop loan. The move is likely to benefit the larger farmer community in general. Furthermore, the government has done away with stamp duty paid by farmers on mortgage while applying for crop loan. The new schemes have been launched starting from Kelapur Tehsil in Wagda Village from 17th May onwards and more areas will be covered in the coming days. The Bank of Maharashtra and Maharashtra Cooperative Bank have received instruction regarding the same.

  

• Odisha to Give Farmers Cooperative Loans worth Rs. 6,000 Crore

  The Odisha Government has decided to disburse Rs. 6,000 crore as cooperative loans to farmers for the kharif season. Cooperation secretary Manoj Ahuja wants farmer members of primary agriculture credit cooperative societies (PACS) to receive timely, adequate and hassle-free credit during the 2016 kharif season. Loan targets will be assigned to commercial and regional rural banks at the state-level bankers committee meeting soon. Targets have also been fixed for each district. Pradhan Mantri Fasal Bima Yojana, a new crop insurance scheme, will also be implemented this year.

  

• Odisha to Receive Rs 8,800 Crore Loans in 2016 Following NABARD Sanctions

  The regional office of the National Bank for Agriculture and Rural Development (NABARD) has officially sanctioned loans worth Rs 8,800 crores in Odisha as state government loans, direct loans and refinance support to banks for the year 2015-2016. A statement released by the regional office, highlighted that Odisha has always been among the biggest beneficiaries of RIDF of NABARD, wherein loans are given to the state government for the setting up and improvement of important and critical rural infrastructure projects such as irrigation, bridges, roads and much more.

  

• NABARD increases Gujarats Credit Potential by 16% for 2016-17

  National Bank for Agriculture and Rural Development (Nabard) has raised the credit potential of Gujarat by 16 percent to Rs. 1,01,353 crore for the fiscal year 2016-17. The credit potential for 2015-16 has been pegged at Rs. 87,473 crore. Nabards State Focus Paper reported that finance requirement in the priority sector is likely to go up. The proportion of agriculture credit in the 2016-17 projection is expected to be Rs. 65,892 crore. MSME and other priority sector is estimated to need credit of Rs. 23,914 crore and Rs. 11,547 crore, respectively. Nabard has requested banks to maintain a smooth credit flow for investment in the agriculture sector. The sectors requirements are estimated to be Rs. 44,777 crore in crop loans and Rs. 21,115 crore for agricultural term loans.

  

• The annual credit plan for Bihar is ready

  Nabard- the National Bank for Agriculture and Rural Development has prepared its annual credit plan for Bihar for the financial year 2016-17 after assessing its credit absorption capacity at over Rs. 1 lakh crore. The credit capacity of Bihar for 2016-17 has been assessed for total 38 districts. Based on the states credit potential, Nabard has reserved loan disbursement worth Rs. 61,656 crore which include Rs. 38,191 crore for short-term loans and Rs 23,465 crore for long-term loans. Also, it plans to reserve Rs. 19,084-crore worth of loan for the micro, small and medium enterprise. Likewise, Rs. 6,039 crore would be disbursed for housing sector, Rs. 4,337 crore for infrastructure development, Rs. 3,157 crore for education sector, Rs. 185 crore as export credit and Rs. 429 crore for renewable energy. Besides, the term loan is reserved for Agriculture. The agriculture sector would receive Rs 4,011 crore for dairy activities, Rs. 3,832 crore for farm mechanization, Rs. 2,658 crore for water, Rs. 3,650 crore food processing units and Rs. 3,712 crore for storage facilities.

  

• Agricultural bodies seek more allocation and Soft Loans for farmers in Budget 2016-2017

  Budget 2016-2017 might bring good news for farmers. The Finance Minister recently spoke out about the need for better investment and revamping the incentive structure for farmers considering that the agricultural sector is facing quite a lot of distress. The need to increase productivity by leveraging technology for seeds that are high yielding and efficient utilisation of water is one of the main challenges faced by agriculturists. Mandatory crop insurance was also sought for farmers.